Reece FY26 Sales Up 4.5% to $9,378m, NPAT Down 2.8%

Reece (ASX:REH) reported FY26 sales revenue of $9,378 million, up 4.5% on FY25, or up 7.3% to $9,630 million on a constant currency basis which applies the FY25 US exchange rate of 0.6471 to the current period. EBITDA, a non-IFRS measure the company calculates as statutory earnings before interest, tax, depreciation and amortisation, was flat at $901 million on a reported basis and up 2.1% to $919 million at constant currency. EBIT fell 2.6% to $534 million and net profit after tax fell 2.8% to $308 million, while earnings per share rose 0.7% to 49.5 cents. Return on capital, a non-IFRS measure calculated as adjusted EBIT divided by shareholders equity plus net debt, where adjusted EBIT is an internal management measure distinct from the statutory EBIT above, was 11.9%, up 5 basis points. Group costs excluding depreciation and amortisation rose 9.6% to $1,820 million, which the company attributed to investment in its network, digital and technology transformation initiatives and its employee proposition, including a new long-term equity program. Statutory figures in the announcement are in Australian dollars unless otherwise stated. The Board declared a fully franked final dividend of 13.40 cents per share, taking total FY26 dividends to 18.84 cents per share against 18.36 cents in FY25, with a record date of 7 October 2026 and a payment date of 21 October 2026.

ANZ region sales revenue rose 8.3% to $4,204 million, driven by higher volumes and with inflation contributing approximately 2%; the company said performance was mixed geographically. ANZ EBITDA increased 7.3% to $532 million and ANZ EBIT increased 6.1% to $360 million, and the region ended the year with 678 branches. US region sales revenue increased 6.5% to US$3,511 million, driven by network expansion and with inflation contributing approximately 2%, while like-for-like sales were down 1.7% for the year and flat in the second half. US EBITDA declined 4.5% to US$251 million and US EBIT was down 13.0% to US$118 million, which the company attributed to the soft market backdrop and ongoing investment in network expansion; a net 25 new US branches were opened during the year, and Reece said housing markets remained soft with residential new construction weighing on demand while the non-residential segment was more resilient. Net operating cash inflows were $645 million against $600 million in FY25, with capital expenditure of $174 million against $258 million and a capex to sales ratio of 1.9%. Net debt increased to $744 million from $590 million, which the company attributed to ongoing investment to support future growth and partial funding for its share buyback programs; the net leverage ratio, which Reece calculates as net debt over 12-month EBITDA on a pre-AASB 16 Leases basis rather than on the $901 million reported EBITDA above, was 1.0x against 0.8x at FY25 and 1.5x at December 2025. Chairman and CEO Peter Wilson said Reece is entering FY27 with a solid pipeline of activity in ANZ which should support momentum in the first half, while in the US residential new construction remains a challenge and the non-residential segment has been more resilient, and as a result the company anticipates modest growth in that region. Reece said consumers in both markets remain interest rate sensitive and that housing affordability challenges represent a risk to the outlook.